Singapore mobile operator MobileOne (M1) is to launch
location-based marketing to its more than 800,000 mobile customers by
the middle of this year as SMS (short message service) usage in the Lion
City soars to an average of three million per day.
The move follows the recent launch of Singapore start-up InspireTech's
FusionAds service, a location-based search service that allows users to
find shops, restaurants and other services through mobile phones.
M1 has partnered with location services providers SignalSoft and
Webraska to offer proximity search and location marketing services.
Location marketing allows retailers to send promotional messages to
customers who are within the vicinity of their shops.
M1's service is to use WAP (wireless application protocol) or SMS as
delivery channels.
M1 spokesman, Chau Swee Kiat, said location marketing would be an opt-in
service, giving users of the mobile carrier the choice to receive
promotional material.
"The concept of location marketing is that when one of our customers is
in a particular area, retailers can give this customer marketing
messages.
Privacy is certainly an issue with this type of service. But we believe
that because this is an opt-in service, the user can decide against
using it."
FusionAds and M1's proximity search are two-way interactive SMS
services.
Users send SMS requests from their mobile phones to receive a list of
retailers within the area.
The FusionAds service handled about 20,000 SMS requests in January and
aims to generate one million requests per month by the end of this
year.
"SMS is very popular in Singapore. In fact we are supposed to be number
two in terms of SMS usage, second to the Philippines, on a per customer
basis, so we are expecting a very positive response," Mr Chau said.
He added the average number of SMS messages sent per day through M1
stood at three million.
"Our record though was on Valentine's Day, when more than 3.7 million
messages were sent," he added.
Singapore's mobile users have been able to send SMS messages through
three mobile operators since April last year.
Meanwhile, Asiacontent.com, which previously focused on Web publishing,
now offers email marketing through SMS in Asia.
Like many dotcoms, the company was forced to change its business model
to survive the dotcom shakeout.
However, although SMS has gained popularity in regional countries such
as the Philippines and Singapore, it has yet to take off in Hong Kong
and mainland China, according to Mr Kenny Chan, general manager,
Asiacontent.com.
"Singapore has picked up SMS very fast. But, although there is a high
usage of mobile phones in Hong Kong, SMS hasn't been as popular. The
reason is partly because in Singapore telecom restrictions are not as
limited as in Hong Kong. But it is also a matter of habit," said Mr
Chan.
